Baidu, Inc. (Nasdaq: BIDU), the
leading Chinese language Internet search provider, today announced its
unaudited financial results for the second quarter ended June 30, 2010(1).

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Second Quarter 2010 Highlights
-- Total revenues in the second quarter of 2010 were RMB1.914 billion
($282.3 million), a 74.4% increase from the corresponding period in
2009.
-- Operating profit in the second quarter of 2010 was RMB971.8 million
($143.3 million), a 129.8% increase from the corresponding period in
2009.
-- Net income in the second quarter of 2010 was RMB837.4 million ($123.5
million), a 118.5% increase from the corresponding period in 2009.
Diluted earnings per ADS(2) for the second quarter of 2010 was RMB2.40
($0.35); diluted earnings per ADS excluding share-based compensation
expenses (non-GAAP) for the second quarter of 2010 was RMB2.46 ($0.36).
(1) This announcement contains translations of certain RMB amounts into
U.S. dollars at specified rates solely for the convenience of the
reader. Unless otherwise noted, all translations from RMB to U.S.
dollars are made at a rate of RMB6.7815 to US$1.00, the effective noon
buying rate as of June 30, 2010 in The City of New York for cable
transfers of RMB as certified for customs purposes by the Federal
Reserve Bank of New York.
(2) Effective on May 12, 2010, Baidu adjusted the ratio of its American
depositary shares ("ADSs") representing Class A ordinary shares from
one (1) ADS for one (1) share to ten (10) ADSs for one (1) share. All
earnings per ADS figures in this announcement give effect to the
forgoing ADS to share ratio change.

"Baidu's record top and bottom line results reflect the healthy growth of
our customer base and continued improvements in monetization efficiency," said
Robin Li, Baidu's chairman and chief executive officer. "This quarter's strong
performance also underscores the vast Internet market opportunities for us and
the growing appreciation for search engine marketing in China."

Mr. Li added, "Baidu continues to focus on user experience and has many
initiatives on this front to ensure Baidu remains at the center of China's
Internet ecosystem."

Jennifer Li, Baidu's chief financial officer, commented, "Effective
execution resulted in impressive revenue growth and healthy margin
improvements for second quarter 2010. Over the next quarters, we will continue
to aggressively invest in R&D, sales and infrastructure to drive innovation,
enhance monetization and support our growth."

Second Quarter 2010 Results

Baidu reported total revenues of RMB1.914 billion ($282.3 million) for the
second quarter of 2010, representing a 74.4% increase from the corresponding
period in 2009.

Online marketing revenues for the second quarter of 2010 were RMB1.913
billion ($282.2 million), representing a 74.5% increase from the corresponding
period in 2009. Baidu had about 254,000 active online marketing customers in
the second quarter of 2010, representing a 25.1% increase from the
corresponding period in 2009 and a 14.9% increase from the previous quarter.
Revenue per online marketing customer for the second quarter was approximately
RMB7,500($1,106), a 38.9% increase from the corresponding period in 2009 and
a 27.1% increase from the previous quarter.

Traffic acquisition cost (TAC) as a component of cost of revenues was
RMB185.6 million ($27.4 million), representing 9.7% of total revenues, as
compared to 16.0% in the corresponding period in 2009 and 13.2% in the first
quarter of 2010. The decrease in TAC as a percentage of total revenues is
primarily due to the quality improvement of Baidu Union traffic.

Bandwidth costs as a component of cost of revenues were RMB67.9 million
($10.0 million), representing 3.5% of total revenues, compared to 4.6% in the
corresponding period in 2009. Depreciation costs as a component of cost of
revenues were RMB83.6 million ($12.3 million), representing 4.4% of total
revenues, compared to 5.5% in the corresponding period in 2009.

Selling, general and administrative expenses were RMB265.0 million ($39.1
million), representing an increase of 47.1% from the corresponding period in
2009, primarily due to increased headcount cost and marketing expenses.

Research and development expenses were RMB159.3 million ($23.5 million), a
66.2% increase from the corresponding period in 2009. The increase was
primarily due to increased R&D personnel expenses.

Share-based compensation expenses, which were allocated to related
operating costs and expense line items, were RMB21.6 million ($3.2 million) in
the second quarter of 2010, compared to RMB19.5 million in the previous
quarter and RMB22.9 million in the corresponding period in 2009.

Operating profit was RMB971.8 million ($143.3 million), representing a
129.8% increase from the corresponding period in 2009. Operating profit
excluding share-based compensation expenses (non-GAAP) was RMB 993.4 million
($146.5 million), a 122.9% increase from the corresponding period in 2009.

Income tax expense was RMB140.5 million ($20.7 million), compared to an
income tax expense of RMB51.1 million in the corresponding period in 2009. The
effective tax rate for the second quarter of 2010 was 14.4% as compared to
12.8% in the previous quarter and 11.8% for the corresponding period in 2009.
The increase in effective tax rate was due to a new tax circular issued in the
second quarter resulting in changes to the applicable tax for one of our
subsidiaries in China.

Net income was RMB837.4 million ($123.5 million), representing a 118.5%
increase from the corresponding period in 2009. Basic and diluted earnings per
ADS for the second quarter of 2010 amounted to RMB2.41($0.36) and RMB2.40($0.35), respectively.

Net income excluding share-based compensation expenses (non-GAAP) was
RMB859.0 million ($126.7 million), a 111.5% increase from the corresponding
period in 2009. Basic and diluted earnings per ADS excluding share-based
compensation expenses (non-GAAP) for the second quarter of 2010 amounted to
RMB2.47($0.36) and RMB2.46($0.36), respectively.

As of June 30, 2010, the Company had cash, cash equivalents and short-term
investments of RMB5.913 billion ($872.0 million). Net operating cash inflow
and capital expenditures for the second quarter of 2010 were RMB1.240 billion
($182.8 million) and RMB181.6 million ($26.8 million), respectively.

Adjusted EBITDA (non-GAAP), defined in this announcement as earnings
before interest, taxes, depreciation, amortization, other non-operating income
and share-based compensation expenses, was RMB1.104 billion ($162.8 million)
for the second quarter of 2010, representing a 112.0% increase from the
corresponding period in 2009.

Outlook for Third Quarter 2010

Baidu currently expects to generate total revenues in an amount ranging
from RMB2.200 billion($324.4 million) to RMB2.260 billion ($333.3 million)
for the third quarter of 2010, representing a 72% to 77% year-over-year
increase. This forecast reflects Baidu's current and preliminary view, which
is subject to change.

Conference Call Information

Baidu's management will hold an earnings conference call at 8:00 PM on
July 21, 2010 U.S. Eastern Time (8:00 AM on July 22, 2010Beijing/Hong Kong
time).

A replay of the conference call may be accessed by phone at the following
number until July 28, 2010:

International: +1.617.801.6888
Passcode: 25736168

Additionally, a live and archived webcast of this conference call will be
available at http://ir.baidu.com .

About Baidu

Baidu, Inc. is the leading Chinese language Internet search provider. As a
technology-based media company, Baidu aims to provide the best way for people
to find information. In addition to serving individual Internet search users,
Baidu provides an effective platform for businesses to reach potential
customers. Baidu's ADSs currently trade on the NASDAQ Global Select Market
under the symbol "BIDU". Each of Baidu's Class A ordinary shares is
represented by 10 ADSs.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "confident" and similar
statements. Among other things, the outlook for the third quarter 2010 and
quotations from management in this announcement, as well as Baidu's strategic
and operational plans, contain forward-looking statements. Baidu may also make
written or oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission, in its annual report to shareholders, in
press releases and other written materials and in oral statements made by its
officers, directors or employees to fourth parties. Statements that are not
historical facts, including statements about Baidu's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve inherent
risks and uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking statement,
including but not limited to the following: our growth strategies; our future
business development, including development of new products and services; our
ability to attract and retain users and customers; competition in the Chinese
and Japanese language Internet search markets; competition for online
marketing customers; changes in our revenues and certain cost or expense items
as a percentage of our revenues; the outcome of ongoing, or any future,
litigation or arbitration, including those relating to intellectual property
rights; the expected growth of the Chinese language Internet search market and
the number of Internet and broadband users in China; Chinese governmental
policies relating to the Internet and Internet search providers and general
economic conditions in China, Japan and elsewhere. Further information
regarding these and other risks is included in our annual report on Form 20-F
and other documents filed with the Securities and Exchange Commission. Baidu
does not undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided in this
press release and in the attachments is as of July 21, 2010, and Baidu
undertakes no duty to update such information, except as required under
applicable law.

About Non-GAAP Financial Measures

To supplement Baidu's consolidated financial results presented in
accordance with GAAP, Baidu uses the following measures defined as non-GAAP
financial measures by the SEC: adjusted EBITDA, operating profit excluding
share-based compensation expenses, net income excluding share-based
compensation expenses, and basic and diluted earnings per ADS excluding
share-based compensation expenses. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in accordance
with GAAP. For more information on these non-GAAP financial measures, please
see the tables captioned "Reconciliations of non-GAAP results of operations
measures to the nearest comparable GAAP measures" and "Reconciliation from net
cash provided by operating activities to adjusted EBITDA" set forth at the end
of this release.

Baidu believes that these non-GAAP financial measures provide meaningful
supplemental information regarding its performance and liquidity by excluding
certain expenses, particularly share-based compensation expenses, that may not
be indicative of its operating performance or financial condition from a cash
perspective. We believe that both management and investors benefit from
referring to these non-GAAP financial measures in assessing our performance
and when planning and forecasting future periods. These non-GAAP financial
measures also facilitate management's internal comparisons to Baidu's
historical performance and liquidity. Baidu has computed its non-GAAP
financial measures using the same consistent method from quarter to quarter
since April 1, 2006. We believe these non-GAAP financial measures are useful
to investors in allowing for greater transparency with respect to supplemental
information used by management in its financial and operational decision
making. A limitation of using these non-GAAP financial measures is that these
non-GAAP measures exclude share-based compensation charge that has been and
will continue to be for the foreseeable future a significant recurring expense
in our results of operations. A limitation of using non-GAAP adjusted EBITDA
is that it does not include all items that impact our net income for the
period. Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP measure.
The accompanying tables have more details on the reconciliations between GAAP
financial measures that are most directly comparable to the non-GAAP financial
measures.